Abbott India Ltd. share price target

Abbott India’s (Abbott) impressive revenue growth of 12.3% YoY in Q3FY25 was ahead of our expectation. As per IQVIA, this may be driven by key brands of Novo Nordisk like Rybelsus and Ryzodeg and owned brands like Duphalac, Udiliv and Thyronorm.

We maintain a BUY rating on the stock

we maintain a BUY rating on the stock. We have set a target price of Rs 31,420/share, which implies an upside potential of 12% from the CMP.

We recommend a BUY with a target price of Rs 31,420/share (46.5x P/E for FY26E), implying an upside of 10% from the CMP.

Earnings were in line with our estimates, where sales grew by 5% y-o-y to Rs 1,557 crore (1.6% below our estimates), EBITDA grew by 10% y-o-y to Rs 3,910 crore.

We have BUY on the Stock

Abbott India’s (Abbott) Q4FY24 revenue growth of 7% was slightly below expectation of 9%; however, its 9.4% growth in FY24 was still ahead of industry growth of ~8%. Sequential drop of 197/407bps in gross/EBITDA margin was on account of higher third-party sourcing and higher overhead cost.

We have BUY on the stock.

? Abbott reported healthy earnings an annual basis but earnings lagged our estimates where sales grew by 7%
y-o-y to Rs 1438 crore (1.3% below our estimates), EBITDA grew by 17.7% y-o-y to Rs 329 crore (13% below our estimates) and PAT grew by 29% y-o-y to Rs 287 crore (4% below our estimates).

Abbott India is growing 1.6 to 1.8 times faster than IPM, based on high brand recognition and an excellent product portfolio.Recommendation: BUY.

Abbott India is growing 1.6 to 1.8 times faster than IPM, based on high brand recognition and an excellent product portfolio.. We have a Hold on the stock.

Company Outlook & Guidance: Abbott India is growing 1.6 to 1.8 times faster than IPM, based on high brand recognition and an excellent product portfolio. Recommendation: HOLD

Abbott India (Abbott) continues to fare better than its MNC peers who are struggling for growth in line with the market rate for last couple of quarters. In Q1FY24, Abbott grew 13.4% ahead of the market growth of 9% despite mandated price cut on NLEM products (26% of core portfolio sales).

Company Outlook & Guidance: In last 2 quarters, company' growth has moderated and gross margins also has decresed due to higher proportion from Antidiabetic segment.Current Valuation: PE40x for FY25 earnings (Earlier Valuation:PE40x)

Abbott India (Abbott) has been a consistent performer. Its strong set of brands has helped it report a YoY revenue growth for the last 22 quarters and heckled challenges like competition in existing brands, mandated price cuts. Despite being an MNC, Abbott has served to the local needs better by launching line extensions and entering new therapies.

Recommendation: BUY